ck0001517695-20231231
PROSPECTUS
April 30,
2024
The
Fund seeks long-term growth of capital.
Please
read this Prospectus and keep it for future reference.
It
contains important information, including information on how
the
Fund invests and the services it offers to shareholders.
These
securities have not been approved or disapproved by the Securities and Exchange
Commission nor has the Commission passed upon the adequacy of this Prospectus.
Any representation to the contrary is a criminal offense.
EVERCORE EQUITY
FUND
55
East 52nd
Street, 23rd
Floor
New
York, New York 10055
1‑800‑443‑4693
http://www.evercoreequityfund.com
TABLE
OF CONTENTS
SUMMARY
SECTION
Investment
Objective
The
investment objective of the Evercore Equity Fund (the “Fund”) is long-term
growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You may pay other fees, such as brokerage commissions and
other fees to financial intermediaries, which are not reflected in the table and
Example below.
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Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
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| Management
Fees |
0.75 |
% |
| Other
Expenses |
0.18 |
% |
| Total
Annual Fund Operating Expenses |
0.93 |
% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
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| 1
Year |
3
Years |
5
Years |
10
Years |
| $95 |
$296 |
$515 |
$1,143 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the Example above, affect the Fund’s
performance. During its most recent fiscal year, the Fund’s portfolio turnover
rate was
9.66% of the average value of its portfolio.
Principal Investment
Strategies
The
Fund attempts to achieve its investment objective of long-term growth of capital
by investing principally in a diversified portfolio of domestic common stocks.
There can be no assurance that the Fund’s investment objective will be achieved.
The Fund normally invests at least 80% of its net assets (plus
the amount of any borrowings for investment purposes) in equity securities.
Although the Fund invests primarily in U.S. securities, it may invest up to 20%
of its total assets in foreign securities, either directly or indirectly,
through investments in American Depositary Receipts (“ADRs”).
The
Fund may invest in large, medium and small capitalization companies. Evercore
Wealth Management, LLC (the “Adviser”) uses a fundamental analysis of financial
measures of companies in which it may invest, including pre-tax margins, return
on equity and cash flow, and
earnings.
The Adviser further evaluates the capital allocation strategy of these
companies. The Adviser continuously monitors the Fund’s investments and assesses
whether an investment’s fundamentals justify holding or selling that particular
security. In practical application, the Fund attempts to attain its investment
objective by relying on two fundamental practices:
•Careful
selection of securities – the Adviser selects investments based on the
fundamental operating performance of individual companies relative to other
available investments.
•Broad diversification among industries – the Adviser believes that
industry diversification is fundamental to spreading the risk that is inherent
in any single investment while recognizing that such risk cannot be
eliminated.
Principal Risks
The value of your
investment will go up and down, and you could lose money by investing in the
Fund. The following principal risks can affect the value of your
investment:
•Market
Risk. The
Fund is subject to the risk that the securities markets will move down,
sometimes rapidly and unpredictably, based on overall economic conditions and
other factors, which may negatively affect Fund performance. Securities markets
also may experience long periods of decline in value. The value of a security
may decline due to factors that are specifically related to a particular
company, as well as general market conditions, such as changes in inflation or
interest rates or investor expectations concerning such rates, or adverse
investor sentiment generally. Changes in the financial condition of a single
issuer can impact a market as a whole. Geo-political risks, including terrorism,
tensions, war or other open conflict between nations, or political or economic
dysfunction within some nations that are global economic powers, may lead to
instability in world economies and markets, may lead to increased market
volatility, and may have adverse long-term effects. Events such as environmental
or natural disasters or pandemics, and governments’ reactions to such events,
could cause uncertainty in the markets and may adversely affect the performance
of the global economy.
•Equity
Risk. The market value of stocks or other equity securities held by the Fund
may fluctuate more dramatically than other asset classes over a shorter period
of time. These price movements may result from changes in an issuer’s financial
condition as well as general market, economic, and political conditions and
other factors.
•Management
Risk. The Fund is subject to the risk that the Adviser’s judgments about the
attractiveness, value, or potential appreciation of the Fund’s investments may
prove to be incorrect or fail to produce the intended results.
•Smaller
Companies Risk. Securities of smaller companies may be more volatile and less liquid
than the securities of larger capitalization companies. Among the reasons for
the greater price volatility are the less certain growth prospects of smaller
companies, the lower degree of liquidity in the markets for such securities, and
the greater sensitivity of smaller companies to changing economic conditions. In
addition, it is more difficult to get information on smaller companies, which
tend to be less well known, have shorter operating histories, do not have
significant ownership by large investors and are followed by relatively few
securities analysts.
•Medium
and Large Companies Risk. Compared to smaller companies, medium- and large capitalization
companies may be less responsive to changes and opportunities. At times, the
stocks of larger companies may lag other types of stocks in performance.
Compared to larger companies, medium size companies may have a shorter history
of operations, and may have limited product lines, markets for their products or
services or financial resources as compared with larger companies. As a result,
the value of such securities may be more volatile than the securities of larger
companies, and the Fund may experience difficulty in purchasing or selling such
securities at the desired time and price or in the desired
amount.
•Foreign
Securities Risk.
Investments in foreign securities, including ADRs, involve risks not associated
with investing in U.S. securities. Foreign markets, particularly emerging
markets, may be less liquid, more volatile and subject to less government
supervision than U.S. markets. Security values also may be negatively affected
by changes in the exchange rates between the U.S. dollar and foreign currencies.
Differences between U.S. and foreign legal, political and economic systems,
regulatory regimes and market practices also may impact security values and it
may take more time to clear and settle trades involving foreign
securities.
•Dividend
Risk. Dividends received on common stocks are not fixed but are declared at
the discretion of an issuer’s board of directors. There is no guarantee that the
companies in which the Fund invests will declare dividends in the future or that
if declared they will remain at current levels or increase over time. A portion
of the distributions that the Fund receives may be a return of
capital.
•Liquidity
Risk.
From time to time, there may be little or no active trading market for a
particular investment in which the Fund may invest or is invested. In such a
market, the value of the Fund’s investments and the Fund's share price may fall.
Illiquid investments may be difficult or impossible to sell or purchase at an
advantageous time or price.
Bar Chart
and Performance
The
performance information provides some indication of the risks of investing in
the Fund by showing changes in the
Fund’s
performance from year to year and by showing how the
Fund’s average annual returns for one, five and ten years compare with
those of a broad measure of market performance and the returns of an additional
index of securities with characteristics similar to those that the Fund
typically holds. Past
performance, before and after taxes, is not necessarily an indication of how the
Fund will perform in the future. Updated performance information
is available on the Fund’s website at http://www.evercoreequityfund.com, or by
calling the Fund toll-free at 1-800-443-4693.
The
Fund has adopted the performance, history and financial statements of its
predecessor fund, the Wall Street Fund, which was advised by the Adviser and had
substantially the same investment objective and strategies as the Fund (the
“Predecessor Fund”), as a result of the reorganization of the Predecessor Fund
into the Fund on October 1, 2014. Accordingly, the performance information
shown below for periods prior to October 1, 2014 is that of the
Predecessor Fund. Prior to May 1, 2021, the Fund had a secondary investment
objective of income generation through the selection of dividend paying
securities.
Year-by-Year Total Return as
of December 31
Best
Quarter Q2 2020: 25.21%
Worst
Quarter Q1 2020: -19.22%
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Average Annual
Total Returns as of December 31,
2023: |
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| Evercore
Equity Fund |
1
Year |
5
Years |
10
Years |
| Return Before
Taxes |
27.95% |
17.54% |
12.28% |
| Return After
Taxes on Distributions |
27.79% |
17.14% |
11.68% |
| Return After
Taxes on Distributions and Sale of Fund Shares |
16.66% |
14.21% |
10.05% |
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Standard
& Poor’s 500®
Index
(reflects no deduction for fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
After-tax returns are calculated using the historically highest
individual federal marginal income tax rates and do not reflect the impact of
state and local taxes. Actual
after-tax returns depend on an investor’s tax situation and may differ from
those shown, and after-tax returns are not relevant to investors who hold their
Fund shares through tax-deferred arrangements such as 401(k) plans or individual
retirement accounts (“IRAs”).
The “Return After Taxes on Distributions” shows the effect of taxable
distributions (dividends and capital gain distributions), but assumes that you
still hold Fund shares at the end of the period. The “Return After Taxes on
Distributions and Sale of Fund Shares” shows the effect of both taxable
distributions and any taxable gain or loss that would be realized if the Fund’s
shares were sold at the end of the specified period. The “Return
After Taxes on Distributions and Sale of Fund Shares” may be higher than other
return figures when a capital loss occurs upon the redemption of Fund
shares.
Investment
Adviser. Evercore
Wealth Management, LLC is the Fund’s investment adviser.
Portfolio
Managers. Timothy
Evnin, Partner and Portfolio Manager of the Adviser, has served as a portfolio
manager of the Fund (including the Predecessor Fund) since 2010. Charles D.
Ryan, Partner and Portfolio Manager of the Adviser, has served as a portfolio
manager of the Fund
(including
the Predecessor Fund) since December 2011. Michael Seppelt, Partner and
Portfolio Manager of the Adviser, has also served as a portfolio manager of the
Fund.
Purchase
and Sale of Fund Shares. You
may purchase or redeem shares by mail (Evercore Equity Fund, c/o U.S. Bank
Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701), or by telephone
at 1‑800‑443‑4693. Transactions will occur only on days the New York Stock
Exchange (“NYSE”) is open. Investors who wish to purchase or redeem Fund shares
through a financial intermediary should contact the financial intermediary
directly. The minimum initial investment for regular accounts (including IRAs)
is $1,000. The minimum initial investment for automatic investment plans is
$1,000. The minimum investment for subsequent investments is $100.
Tax
Information. The
Fund’s distributions generally are taxable to you as ordinary income or
long-term capital gains, unless you are investing through a tax-deferred
arrangement, such as a 401(k) plan or IRA.
Payments
to Broker-Dealers and Other Financial Intermediaries. If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create
conflicts of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
INVESTMENT
OBJECTIVE AND POLICIES, PRINCIPAL INVESTMENT STRATEGIES, RELATED RISKS AND
DISCLOSURE OF PORTFOLIO HOLDINGS
INVESTMENT
OBJECTIVE AND STRATEGIES
The
Fund’s investment objective is long-term growth of capital. The Fund attempts to
achieve this investment objective by investing principally in a diversified
portfolio of domestic common stocks. The Fund normally invests at least 80% of
its net assets (plus the amount of any borrowings for investment purposes) in
equity securities. The Fund will not change this policy without providing
shareholders at least 60 days written notice.
There
can be no assurance that the Fund’s investment objective will be achieved. The
Fund considers equity securities to include, among others, common stocks,
preferred stocks, securities convertible into common stocks, and shares of real
estate investment trusts (REITs). Although the Fund invests primarily in U.S.
securities, it may invest up to 20% of its total assets in foreign securities,
either directly or indirectly through investments in ADRs.
The
Fund may invest in large, medium and small capitalization companies. The Adviser
uses a fundamental analysis of financial measures of companies in which it may
invest, including pre-tax margins, return on equity and cash flow, and earnings.
The Adviser further evaluates the capital allocation strategy of these
companies.
The
Adviser continuously monitors the Fund’s investments and assesses whether an
investment’s fundamentals justify holding or selling that particular
security.
In
practical application, the Fund attempts to attain its investment objective by
relying on two fundamental practices:
▪Careful
selection of securities – the Adviser selects investments based on the
fundamental operating performance of individual companies relative to other
available investments.
▪Broad
diversification among industries – the Adviser believes that industry
diversification is fundamental to spreading the risk that is inherent in any
single investment while recognizing that such risk cannot be
eliminated.
The
Fund’s investment objective may be changed without the approval of the Fund’s
shareholders, upon 60 days written notice to shareholders.
Temporary
Investments
The
Adviser may take a temporary defensive position when the securities trading
markets or the economy are experiencing excessive volatility or a prolonged
general decline, or other adverse conditions exist. Under these circumstances,
the Fund may be unable to pursue its investment objective because it may not
invest or may invest less in securities of companies that the Adviser believes
have growth potential.
RELATED
RISKS
The
Fund is not designed to offer a complete or balanced investment program. Most of
the Fund’s performance depends on what happens in the stock market. The market’s
behavior is unpredictable, particularly in the short-term. There can be no
guarantee that the Fund will achieve its goal. The Fund is a mutual fund, not a
bank deposit, and is not guaranteed or insured by the Federal Deposit Insurance
Corporation or any other government agency. The value of your investment will go
up and down, and you could lose money by investing in the Fund.
Risk
is the chance that you will lose your money on your investment or that it will
not earn as much as you expect. In general, the greater the risk, the more money
your investment can earn for you and the more you can lose. Some of the risks,
including the principal risks, of investing in the Fund are discussed below.
However, other factors may also affect the Fund’s investment results. Refer to
the Fund’s Statement of Additional Information for further discussion on the
risks associated with investments in the Fund.
Market
Risk.
The Fund is subject to the risk that the securities markets will move down,
sometimes rapidly and unpredictably, based on overall economic conditions and
other factors, which may negatively affect Fund performance. Securities markets
also may experience long periods of decline in value. The value of a security
can be more volatile than the market as a whole and can perform differently from
the market as a whole. Any issuer of securities may perform poorly, causing the
value of its securities to decline. Poor performance may be caused by a variety
of factors, such as poor management decisions; reduced demand for the issuer’s
goods or services; competitive pressures; negative perception in the
marketplace; loss of major customers; strategic initiatives such as mergers or
acquisitions and the market response to any such initiatives; and the historical
and prospective earnings of the issuer. The value of a security also may decline
due to general market conditions, such as real or perceived adverse economic or
political conditions, inflation rates and/or investor expectations concerning
such rates, changes in interest rates, recessions, or adverse investor sentiment
generally. During a general downturn in the securities markets, multiple asset
classes may decline in value simultaneously. Even when securities markets
perform well, there can be no assurance that the investments held by the Fund
will increase in value along with the broader market. Changes in the financial
condition of (or other event affecting) a single issuer can impact an individual
sector or industry, or the securities markets as a whole. The value of a
security also may decline due to factors that affect a particular sector or
industry.
Geopolitical
events, including acts of terrorism, tensions, war or other open conflicts
between nations, or political or economic dysfunction within some nations that
are global economic powers or major producers of oil, may lead to overall
instability in world economies and markets generally and have led, and may in
the future lead, to increased market volatility and may have adverse long-term
effects. World markets, or those in a particular region, may all react in
similar fashion to important economic, political or other developments. Events
such as environmental and natural disasters or other catastrophes, public health
crises (such as epidemics and pandemics), social unrest, and cybersecurity
incidents, and governments’ reactions (or failure to react) to such events,
could cause uncertainty in the markets and may adversely affect the performance
of the global economy. Impacts from climate change may include significant risks
to global financial assets and economic growth. The extent and duration of such
events and resulting market disruptions could be substantial and could magnify
the impact of other risks to the Fund. The value and liquidity of the Fund’s
investments may be negatively affected by
developments
in other countries and regions, whether or not the Fund invests in securities of
issuers located in or with significant exposure to the countries or regions
directly affected.
Changes
in government or central bank policies and political, diplomatic and other
events within the United States and abroad could cause uncertainty in the
markets, may affect investor and consumer confidence, and may adversely impact
financial markets and the broader economy, perhaps suddenly and to a significant
degree. High public debt in the United States and other countries creates
ongoing systemic and market risks and policymaking uncertainty and may
negatively affect economic conditions and the value of markets, sectors and
companies in which the Fund invests.
In
addition, markets and market participants are increasingly reliant on
information data systems. Inaccurate data, software or other technology
malfunctions, programming inaccuracies, unauthorized use or access, and similar
circumstances may impair the performance of these systems and may have an
adverse impact upon a single issuer, a group of issuers, or the market at large.
Equity
Risk. The
market value of stocks or other equity securities held by the Fund may fluctuate
more dramatically than other asset classes over a shorter period of time. These
price movements may result from changes in an issuer’s financial condition as
well as general market, economic, and political conditions and other
factors.
Management
Risk. The
Fund is subject to the risk that the Adviser’s judgments about the
attractiveness, value, or potential appreciation of the Fund’s investments may
prove to be incorrect. If the securities selected and strategies employed by the
Fund fail to produce the intended results, the Fund could underperform other
funds with similar objectives and investment strategies.
Smaller
Companies Risk. Historically,
smaller company securities have been more volatile in price than larger and
medium size company securities, especially over the short-term. Among the
reasons for the greater price volatility are the less certain growth prospects
of smaller companies, the lower degree of liquidity in the markets for such
securities, and the greater sensitivity of smaller companies to changing
economic conditions. Because the securities of smaller companies generally trade
in lower volumes than larger capitalization securities, the Fund may experience
difficulty in purchasing or selling such securities at the desired time and
price or in the desired amount. In addition, small companies may lack depth of
management, they may be unable to generate funds necessary for growth or
development, have narrower product lines, or they may be developing or marketing
new products or services for which markets are not yet established and may never
become established. Therefore, while smaller companies may offer greater
opportunities for capital growth than larger, more established companies, they
also involve greater risks. The Fund may also choose to hold investments in
companies that were small at the time of investment and have become larger due
to growth in their business.
Medium
and Large Companies Risk.
Compared to smaller companies, medium and large-capitalization companies may be
less responsive to changes and opportunities. At times, the stocks of larger
companies may lag other types of stocks in performance. The stocks of medium
size companies are often more volatile and less liquid than the stocks of larger
companies and may be more affected than other types of stocks by the
underperformance of a sector or during market downturns. Compared to larger
companies, medium size companies may have a shorter
history
of operations, and may have limited product lines, markets for their products or
services or financial resources as compared with larger companies. As a result,
the value of such securities may be more volatile than the securities of larger
companies, and the Fund may experience difficulty in purchasing or selling such
securities at the desired time and price or in the desired amount.
Foreign
Securities Risk.
Investments in foreign securities involve risks not associated with, or more
prevalent than those that may be associated with, investing in U.S. securities.
Changes in economic and tax policies, government instability, war or other
political or economic actions or factors may have an adverse effect on the
Fund’s foreign investments. Foreign economies and markets may not be as strong
or well regulated and foreign political systems may not be as stable (and may
subject the Fund to the risk of nationalization, expropriation, or confiscatory
taxation of assets). The economies of certain foreign markets may not compare
favorably with the economy of the United States with respect to such issues as
growth of gross national product, reinvestment of capital, resources and balance
of payments position. Over a given period of time, foreign securities may
underperform U.S. securities — sometimes for years. The Fund could also
underperform if it invests in countries or regions whose economic performance
falls short. Foreign markets, particularly emerging markets, may be less liquid,
more volatile and subject to less government supervision and regulation than
domestic markets. Less information may be available about foreign companies. In
general, foreign companies are not subject to uniform accounting, auditing, or
financial reporting standards or to other regulatory practices and requirements
as are U.S. companies. Many foreign governments do not supervise and regulate
stock exchanges, brokers and the sale of securities to the same extent as does
the U.S. and may not have laws to protect investors that are comparable to U.S.
securities laws. Security values also may be negatively affected by changes in
the exchange rates between the U.S. dollar and foreign currencies. Differences
between U.S. and foreign legal, political and economic systems, regulatory
regimes and market practices also may impact security values and it may take
more time to clear and settle trades involving foreign securities. Foreign
securities are also subject to the risks associated with the potential
imposition of economic or other sanctions against a particular foreign country,
its nationals, businesses or industries, which could adversely affect the value
of the Fund’s investments.
ADR
Risk:
ADRs
are receipts issued by domestic banks or trust companies that represent the
deposit of a security of a foreign issuer and are publicly traded in the United
States. Investments in ADRs are subject to certain of the risks associated with
investing directly in the foreign securities that they evidence or into which
they may be converted, including, but not limited to, currency fluctuations and
political and financial instability in the home country of an issuer of the
underlying ADR. In addition, foreign companies may use different accounting and
financial standards. Such events could negatively affect the value of the Fund’s
shares. The securities underlying ADRs trade on foreign exchanges at times when
the U.S. markets are not open for trading. As a result, the value of ADRs may
not track the price of the underlying securities and may change materially at
times when the U.S. markets are not open for trading.
Dividend
Risk. Securities
that pay high dividends as a group can fall out of favor with the market,
causing these companies to underperform companies that do not pay high
dividends. An issuer of stock held by the Fund may choose not to declare a
dividend or the dividend rate might not remain at current levels. Changes in the
dividend policies of companies owned by the Fund and the capital resources
available for these companies’ dividend payments may reduce the
level
of dividend payments and adversely affect the Fund. Dividend paying stocks also
may not experience the same level of earnings growth or capital appreciation as
non-dividend paying stocks.
Liquidity
Risk.
Certain securities in which the Fund invests may be less readily marketable and
may be subject to greater fluctuation in price than other securities. These
features may make it more difficult for the Fund to sell or buy at a favorable
time or price or in sufficient amounts to achieve the desired level of exposure.
From time to time, there may be little or no active trading market for a
particular investment in which the Fund may invest or is invested due to a
variety of circumstances, including but not limited to deterioration in the
financial condition of an issuer or issuers in a particular industry or market
segment, periods of economic and market stress, changes in investor perceptions
regarding an issuer or industry, periods of market volatility that trigger
market circuit breakers that halt trading in securities or close markets
entirely, planned market closures, shortened trading hours, extended market
holidays, and other reasons.
Certain
investments that were liquid when purchased may later become illiquid, sometimes
abruptly, particularly in times of overall economic distress or adverse investor
perception. In addition, the trading market for certain investments may become
illiquid under adverse market or economic conditions independent of any specific
adverse changes in the conditions of a particular issuer. During periods of
market stress, an investment or even an entire market segment may become
illiquid, sometimes abruptly, which can adversely affect the Fund’s ability to
limit losses. In addition, a reduction in the ability or willingness of dealers
and other institutional investors to make a market in certain securities may
result in decreased liquidity in certain markets.
REITs
Risk. Investing
in REITs exposes investors to the risks of owning real estate directly, as well
as to risks that relate specifically to the way in which REITs are organized and
operated. Equity REITs, which generally invest directly in real estate, may be
affected by changes in the value of the underlying property owned by the REIT,
while mortgage REITs, which invest in mortgages secured by interests in real
estate, may be affected by the quality of any credit extended. REIT and other
real estate company securities are subject to, among other risks: declines in
property values; defaults by mortgagors or other borrowers and tenants;
increases in property taxes and other operating expenses; intense competition
and overbuilding in their sector of the real estate market; fluctuations in
rental income; availability of mortgages and changes in interest rates; lack of
availability of mortgage funds or financing; extended vacancies of properties,
especially during economic downturns; changes in tax and other regulatory
requirements; changes in demographic trends, losses due to environmental
liabilities; and casualty or condemnation losses. REITs also are dependent upon
the skills of their managers and are subject to heavy cash flow dependency or
self-liquidation. Domestic REITs could be adversely affected by failure to
qualify for tax-free “pass-through” of net income and net realized gains under
the Internal Revenue Code of 1986, as amended, or to maintain their exemption
from registration under the Investment Company Act of 1940, as amended. The
value of REIT common shares may decline when interest rates rise. REIT and other
real estate company securities tend to be small- to mid-capitalization
securities and are subject to the risks of investing in small- to mid-cap
securities. Moreover, shares of REITs may trade less frequently and, therefore,
are subject to more erratic price movements than securities of larger issuers.
Convertible
Securities Risk.
The value of a convertible security typically increases or decreases with the
price of the underlying common stock. In general, a convertible security is
subject to the
risks
of stocks when the underlying stock’s price is high relative to the conversion
price and is subject to the risks of debt securities when the underlying stock’s
price is low relative to the conversion price. Many convertible securities have
credit ratings that are below investment grade and are subject to the same risks
as an investment in lower-rated debt securities (commonly known as “junk
bonds”). Lower-rated debt securities may fluctuate more widely in price and
yield than investment grade debt securities and may fall in price during times
when the economy is weak or is expected to become weak. To the extent the Fund
invests in convertible securities issued by small- or mid-cap companies, it will
be subject to the risks of investing in such companies.
Issuer
Risk. The
value of an individual security or particular type of security can be more
volatile than the market as a whole and can perform differently from the value
of the market as a whole. The value of an issuer’s securities may decline
because of a variety of factors, including management performance, historical
and prospective earnings of the issuers and the value of its assets,
unsuccessful products or services, loss of major customers, major litigation
against the issuer, or changes in government regulations affecting the issuer or
the competitive environment. A change in the financial condition of a single
issuer may affect securities markets as a whole. Certain unanticipated events,
such as natural disasters, can have a dramatic adverse effect on the value of an
issuer’s securities.
Asset
Class Risk. The
securities in the Fund’s portfolio may underperform the returns of other
securities or indexes that track other industries, groups of industries,
markets, asset classes or sectors. Various types of securities tend to
experience cycles of outperformance and underperformance in comparison to each
other and the general securities markets.
Recent
Market Conditions Risk.
U.S.
and international markets have experienced significant volatility in recent
months and years. As a result of such volatility, investment returns may
fluctuate significantly. Global economies and financial markets are highly
interconnected, which increases the likelihood that conditions in one country or
region will adversely impact issuers in a different country or
region.
Due
to concerns regarding recent high inflation in many sectors of the U.S. and
global economies, the U.S. Federal Reserve (“Fed”) and many foreign central
banks and monetary authorities raised interest rates and implemented other
policy initiatives in an effort to control inflation, and they may continue to
do so. It is difficult to predict the timing, frequency, magnitude or direction
of further interest rate changes, and the evaluation of macro-economic and other
conditions or events could cause a change in approach in the future.
Fixed-income and related markets may continue to experience heightened levels of
interest rate and price volatility. Inflation risk is the uncertainty over the
future real value (after inflation) of an investment. The Fund’s investments may
not keep pace with inflation, and the value of an investment in the Fund may be
eroded over time by inflation. Changes in government or central bank policies
could negatively affect the value and liquidity of the Fund’s investments and
cause it to lose money, and there can be no assurance that the initiatives
undertaken by governments and central banks will be successful.
The
Fed’s or foreign central banks’ actions may result in an economic slowdown in
the United States and abroad. There are concerns that monetary policy may
provide less support should economic growth slow. An economic slowdown may
negatively affect national and global economies, as well as national and global
securities and commodities markets, and may continue for an extended period of
time and have unforeseen impacts. Any deterioration in economic fundamentals may
increase the risk of default or insolvency of particular issuers,
negatively
impact market values, cause credit spreads to widen, and reduce bank balance
sheets. Any of these could cause an increase in market volatility, reduce
liquidity across various markets, or decrease confidence in the markets.
In
March 2023, the shutdown of certain financial institutions raised economic
concerns over disruption in the U.S. banking system. There can be no certainty
that the actions taken by the U.S. government to strengthen public confidence in
the U.S. banking system will be effective in mitigating the effects of financial
institution failures on the economy and restoring public confidence in the U.S.
banking system. In addition, widespread loan defaults in the commercial real
estate sector could have a cascading effect on the broader banking system,
straining the financial health of lending institutions and potentially causing
more banks to fail.
High
public debt in the United States and other countries creates ongoing systemic
and market risks and policymaking uncertainty, and there has been a significant
increase in the amount of debt due to the economic effects of the coronavirus
disease (COVID-19) pandemic and ensuing economic relief and public health
measures. Economic, political and other developments may result in a further
increase in the amount of public debt, including in the United States. The
long-term consequences of high public debt are not known, but high levels of
public debt may negatively affect economic conditions and the value of markets,
sectors and companies in which the Fund invests.
Political
and diplomatic events within the United States, including a contentious domestic
political environment, changes in political party control of one or more
branches of the U.S. government, the U.S. government’s inability at times to
agree on a long-term budget and deficit reduction plan, a U.S. government
shutdown (or the threat of such a shutdown), and disagreements over, or threats
not to increase, the U.S. government’s borrowing limit (or “debt ceiling”), as
well as political and diplomatic events abroad, may affect investor and consumer
confidence and may adversely impact financial markets and the broader economy,
perhaps suddenly and to a significant degree. A downgrade of the ratings of U.S.
government debt obligations, or concerns about the U.S. government’s credit
quality in general, could have a substantial negative effect on the U.S. and
global economies. Moreover, although the U.S. government has honored its credit
obligations, there remains a possibility that the United States could default on
its obligations. The consequences of such an unprecedented event are impossible
to predict, but it is likely that a default by the United States would be highly
disruptive to the U.S. and global securities markets and could significantly
impair the value of the Fund’s investments.
Tensions,
war, or other open conflicts between nations, such as between Russia and
Ukraine, in the Middle East, and in eastern Asia, the resulting responses by the
United States and other countries, and the potential for wider conflict have
had, and could continue to have, severe adverse effects on regional and global
economies and could further increase volatility and uncertainty in the financial
markets. The extent and duration of ongoing hostilities or military actions and
the repercussions of such actions are impossible to predict. These events have
resulted in, and could continue to result in, significant market disruptions,
including in certain industries or sectors such as the oil and natural gas
markets, and may further strain global supply chains and negatively affect
inflation and global growth. The resulting adverse market conditions could be
prolonged. These and any related events could significantly impact the Fund’s
performance and the value of an investment in the Fund, whether or not the Fund
invests in securities of issuers located in or with significant exposure to the
countries or regions directly affected.
Certain
illnesses spread rapidly and have the potential to significantly and adversely
affect the global economy and have material adverse impacts on the Fund. Public
health crises caused by
outbreaks
of infectious diseases or other public health issues may disrupt market
conditions and operations and economies around the world, exacerbate other
pre-existing economic, political, and social tensions and risks, and negatively
affect market performance and the value of investments in individual companies
in significant and unforeseen ways. The impact of any outbreak may last for an
extended period of time. For example, the impact of the coronavirus disease
(COVID-19) pandemic caused significant volatility and severe losses in global
financial markets. The COVID-19 pandemic and efforts to contain its spread
resulted in significant disruptions to business operations, supply chains and
customer activity, higher default rates, widespread business closures and
layoffs, travel restrictions and border closings, extended quarantines and
stay-at-home orders, event and service cancellations, labor shortages, and
significant challenges in healthcare service preparation and delivery, as well
as general concern, uncertainty and social unrest. The continued impact of
COVID-19 is uncertain. Other outbreaks of infectious diseases or other public
health issues that may arise in the future may have similar or worse
effects.
Slowing
global economic growth, the rise in protectionist trade policies, and changes to
some major international trade agreements (including, for example, the trade
agreement between the United Kingdom and the European Union) could affect the
economies of many countries in ways that cannot necessarily be foreseen at the
present time. The United States has developed increasingly strained relations
with a number of foreign countries. If relations with certain countries
deteriorate, it could adversely affect U.S. issuers as well as non-U.S. issuers
that rely on the United States for trade. For example, the United States has
imposed tariffs and other trade barriers on Chinese exports, has restricted
sales of certain categories of goods to China, and has established barriers to
investments in China. In addition, the Chinese government is involved in a
longstanding dispute with Taiwan that has included threats of invasion. If
relations between the United States and China do not improve or continue to
deteriorate, or if China were to attempt unification of Taiwan by coercion or
force, economies, markets and individual securities may be severely affected
both regionally and globally, and the value of the Fund’s investments may go
down.
Advancements
in technology may also adversely impact market movements and liquidity and may
affect the overall performance of the Fund. For example, the advanced
development and increased regulation of artificial intelligence may impact the
economy and the performance of the Fund. As artificial intelligence is used more
widely, the profitability and growth of the Fund’s holdings may be impacted,
which could impact the overall performance of the Fund.
In
addition, global climate change may have a significant adverse effect on
property and security values. A rise in sea levels, changes in weather patterns,
an increase in powerful storms and/or an increase in flooding could cause real
estate properties to lose value or become unmarketable altogether. Unlike
previous declines in the real estate market, properties in affected zones may
never recover their value. Large wildfires have devastated, and in the future
may devastate, entire communities and may be very costly to any business found
to be responsible for the fire or conducting operations in affected areas.
Regulatory changes and divestment movements in the United States and abroad tied
to concerns about climate change could adversely affect the value of certain
land and the viability of industries whose activities or products are seen as
accelerating climate change. Losses related to climate change could adversely
affect corporate borrowers and mortgage lenders, the value of mortgage-backed
securities, the bonds of municipalities that depend on tax revenues and tourist
dollars generated by affected properties, and insurers of the properties and/or
of corporate, municipal or mortgage-backed securities. Because property and
security values are driven largely by buyers’ perceptions, it is difficult to
know the time period over which these market effects might unfold.
All
of these risks may have a material adverse effect on the performance and
financial condition of the companies and other issuers in which the Fund
invests, and on the overall performance of the Fund.
Cybersecurity
Risk. The
Fund, its service providers, third party fund distribution platforms, and your
ability to transact with the Fund, may be negatively impacted due to operational
risks arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. The occurrence of any of these
problems could result in a loss of information, regulatory scrutiny,
reputational damage and other consequences, any of which could have a material
adverse effect on the Fund or its shareholders. Cybersecurity incidents could
also affect issuers of securities in which the Fund invests, leading to
significant loss of value.
PORTFOLIO
HOLDINGS DISCLOSURE
A
description of the Fund’s policies and procedures with respect to the disclosure
of the Fund’s portfolio securities is available in the Fund’s Statement of
Additional Information. The Fund will make its portfolio holdings information
publicly available by posting the information on the Fund’s website at
www.evercoreequityfund.com on a monthly basis. Disclosure of the Fund's holdings
as of the end of its fiscal year and its second fiscal quarter is filed with the
SEC on Form N-CSR within 60 days of the period covered. In addition, monthly
portfolio disclosures will be filed with the SEC on Form N-PORT no later than 60
days after the end of each fiscal quarter. The Fund’s complete portfolio
holdings as of its first and third fiscal quarter ends are made publicly
available on Form N-PORT 60 days after the end of the respective quarter. The
Annual and Semi-Annual Reports and Form N-CSR will be available by contacting
Evercore Equity Fund c/o U.S. Bank Global Fund Services, P.O. Box 701,
Milwaukee, Wisconsin 53201-0701 or calling 1‑800‑443‑4693 and on the SEC’s
website at www.sec.gov.
HOW
TO PURCHASE SHARES
Shares
of the Fund are purchased at the net asset value (“NAV”) per share next
calculated after your purchase order and payment is received in good order (as
defined below).
Minimum
Initial Investment
You
may open a Fund account with a minimum investment of the following
amounts:
▪$1,000
or more for regular accounts (including IRAs)
▪$1,000
or more for automatic investment plans
Minimum
Additional Investment
You
may make subsequent investments to your Fund account at any time with the
following minimum:
▪$100
or more
Good
Order Purchase Requests:
When
making a purchase request, make sure your request is in good order. “Good order”
means your request includes:
▪the
name
of
the Fund
▪the
dollar
amount of
shares to be purchased
▪account
application
form
or investment stub
▪check
made payable to Evercore
Equity Fund
All
purchases by check must be in U.S. dollars and drawn on U.S. banks. The Fund
will not accept payment in cash or money orders. To prevent check fraud, the
Fund will not accept third party checks, Treasury checks, credit card checks,
traveler’s checks or starter checks for the purchase of shares. The Fund is
unable to accept post-dated checks or any conditional order or
payment.
If
your check is returned for any reason, a $25 fee will be assessed against your
account. You will also be responsible for any losses suffered by the Fund as a
result.
How
Purchases may be Made
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| Through
a broker/dealer or other intermediary |
You
can purchase shares of the Fund through asset management programs or
services offered or administered by broker‑dealers, fee‑based financial
planners, financial institutions or other service providers that have
entered into agreements with the Fund. Once you have opened your account
with your intermediary, you must purchase all additional shares through
your intermediary. The intermediary is responsible for sending your
purchase order to the Fund’s transfer agent, U.S. Bancorp Fund Services,
LLC (the “Transfer Agent”). Please keep in mind that your broker‑dealer or
other intermediary may charge additional fees for its
services. |
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By
mail |
You
can purchase shares of the Fund directly from the Transfer Agent. To open
an account, complete an account application form and send it together with
your check to the address below. To make additional investments once you
have opened your account, send your check together with the detachable
form that is included with your Fund account statement or confirmation.
You may also send a letter stating the amount of your investment with your
name, the name of the Fund and your account number together with a check
to the address below. |
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Regular
Mail
Evercore
Equity Fund
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
Wisconsin 53201-0701 |
Overnight
Delivery
Evercore
Equity Fund
c/o
U.S. Bank Global Fund Services
615
E. Michigan Street, Third Floor
Milwaukee,
Wisconsin 53202 |
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NOTE:
The Fund and the Transfer Agent do not consider the U.S. Postal Service or
other independent delivery services to be their agents. Therefore, deposit
in the mail or with such services, or receipt at U.S. Bancorp Fund
Services, LLC’s post office box, of purchase orders or redemption requests
does not constitute receipt by the Transfer Agent or the Fund. Receipt of
purchase orders or redemption requests is based on when the order is
received at the Transfer Agent’s offices. |
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In
compliance with the USA PATRIOT Act of 2001, please note that the Transfer
Agent will verify certain information on your account application as part
of the Fund’s Anti-Money Laundering Program. As requested on the
application, you must provide your full name, date of birth, social
security or other taxpayer identification number and permanent street
address. If you are opening the account in the name of a legal entity
(e.g., partnership, limited liability company, business trust,
corporation, etc.), you must also supply the identity of the beneficial
owners. Mailing addresses containing only a P.O. box will not be accepted.
Please contact the Fund at 1‑800‑443‑4693 if you need additional
assistance when completing your application. |
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If
an investor does not provide the Transfer Agent with sufficient
information for the Transfer Agent to establish a reasonable belief of the
identity of an investor, the account will be rejected or the investor will
not be allowed to perform a transaction for the account until the investor
provides the Transfer Agent with the necessary information. In the rare
event that the Transfer Agent is unable to verify your identity, the Fund
reserves the right to redeem your account at the current day’s net asset
value. |
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Shares
of the Fund have not been registered for sale outside of the United
States. The Fund generally does not sell shares to investors residing
outside of the United States, even if they are United States citizens or
lawful permanent residents, except to investors with United States
military APO/FPO addresses. |
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| By
telephone |
If
you accepted telephone transactions on your account application, and your
account has been open for at least 7 business days, call the Fund
toll-free at 1-800-443-4693 and you will be allowed to move money from
your bank account to your Fund account upon request. Only bank accounts
held at domestic institutions that are Automated Clearing House (“ACH”)
members may be used for telephone transactions. For security reasons,
requests by telephone will be recorded. Your purchase will take place at
the net asset value determined on the day your order is placed, provided
that your order is received prior to 4 p.m. Eastern
time. |
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| By
wire |
If
you are making your first investment in the Fund, before you wire funds,
the Transfer Agent must have a completed account application. You can mail
or overnight deliver your account application to the Transfer Agent. Upon
receipt of your completed account application, the Transfer Agent will
establish an account for you. The account number assigned will be required
as part of the instruction that should be given to your bank to send the
wire. Your bank must include the name of the Fund you are purchasing, your
name and account number so that monies can be correctly applied. Your bank
should transmit funds by wire to: |
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U.S.
Bank, National Association
777
East Wisconsin Avenue
Milwaukee,
Wisconsin 53202
ABA
#: 075000022
Credit:
U.S.
Bancorp Fund Services, LLC
Account
#: 112-952-137
Further
Credit:
Evercore
Equity Fund
(shareholder
registration)
(shareholder
account number) |
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sending your wire, please contact the Transfer Agent at 1-800-443-4693 to
advise them of your intent to wire funds. This will ensure prompt and
accurate credit upon receipt of your wire. |
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| Wired
funds must be received prior to 4:00 p.m. (Eastern time) to be eligible
for same day pricing. The Fund and U.S. Bank, N.A. are not responsible for
the consequence of delays resulting from the banking or Federal Reserve
wire system, or from incomplete wiring instructions. |
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Through
an automatic
investment
plan |
If
you intend to use the Automatic Investment Plan (“AIP”), you may open your
account with an initial minimum investment of $1,000. Once your account
has been opened, you may purchase shares of the Fund through the AIP in
amounts of at least $100. If you chose this option, funds will be
automatically transferred from your bank account monthly. To be eligible
for this plan, your bank must be a domestic institution that is an ACH
member. The Fund may modify or terminate the AIP at any time. The first
AIP purchase will take place no earlier than 7 business days after
the Transfer Agent has received your request. If your bank rejects your
payment, the Transfer Agent will charge a $25 fee to your account. To
begin participating in the AIP, please complete the Automatic Investment
Plan section on the account application. Any request to change or
terminate your AIP should be submitted to the Transfer Agent five calendar
days prior to effective date. |
Householding
In
an effort to decrease costs, the Fund intends to reduce the number of duplicate
prospectuses and Annual and Semi-Annual Reports you receive by sending only one
copy of each to those addresses shared by two or more accounts and to
shareholders we reasonably believe are from the same family or household. Once
implemented, if you would like to discontinue householding for your accounts,
please call toll-free at 1-800-443-4693 to request individual copies of these
documents. Once the Fund receives notice to stop householding, we will begin
sending individual copies thirty days after receiving your request. This policy
does not apply to account statements.
HOW
TO REDEEM SHARES
You
may request redemption of your shares at any time by any of the methods
described below. Your shares will be redeemed at the next NAV per share
calculated after your order is received in good order by the Fund or its agents.
“Good order” means your request is received in the manner described below, and
includes:
▪the
name
of
the Fund
▪the
dollar
amount or
the number
of
shares to be redeemed
▪signatures
of
all registered shareholders exactly as the shares are registered, including a
signature guarantee when applicable
▪the
account
number
The
Fund normally sends the proceeds of your redemption to you on the next business
day after your request is received; however, it may take up to seven days to
send your proceeds.
The
Fund typically expects to meet redemption requests by paying out proceeds from
cash or cash equivalent portfolio holdings, or by selling portfolio holdings. In
stressed market conditions, redemption methods may include redeeming in
kind.
Before
selling recently purchased shares, please note that if the Transfer Agent has
not yet collected payment for the shares you are selling, it may delay sending
the proceeds until the payment is collected, which may take up to 12 calendar
days from the purchase date. This delay will not apply if you purchased your
shares via wire payment.
How
Redemptions may be Made
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a broker/dealer or other intermediary |
If
you purchased your shares through a broker‑dealer or other financial
intermediary, your redemption order should be placed through the same
organization. Your broker or financial consultant is responsible for
sending your redemption order to the Transfer Agent on a timely basis.
Please keep in mind that your broker or financial consultant may charge
additional fees for its services. |
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By
mail |
If
you purchased your shares directly from the Transfer Agent, you should
send your written redemption request to the address below. Your request
should contain the Fund’s name, your account number and the number of
shares or the dollar amount of shares to be redeemed. Be sure to have all
account holders sign the letter. Additional documents are required for
shareholders that are corporations, partnerships, executors, trustees,
administrators, or guardians (i.e.,
corporate resolutions or trust documents indicating proper authorization).
Please see the Statement of Additional Information for more
information. |
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Regular
Mail
Evercore
Equity Fund
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
Wisconsin 53201-0701 |
Overnight
Delivery
Evercore
Equity Fund
c/o
U.S. Bank Global Fund Services
615
E. Michigan Street, Third Floor
Milwaukee,
Wisconsin 53202 |
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NOTE:
The Fund does not consider the U.S. Postal Service or other independent
delivery services to be its agents. Therefore, deposit in the mail or with
such services, or receipt at U.S. Bancorp Fund Services, LLC, post office
box, of purchase orders or redemption requests does not constitute receipt
by the Transfer Agent. Receipt of purchase orders or redemption requests
is based on when the order is received at the Transfer Agent’s
offices. |
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The
Transfer Agent may require a signature
guarantee
for certain redemptions. Please see the “Signature Guarantees” section for
further details. |
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By
telephone
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If
you accepted telephone transactions (either through your account
application form or by subsequent arrangement in writing with the Fund)
you may redeem shares in any amount up to $50,000, but not less than $100,
by calling 1-800-443-4693. You may have a check sent to the address of
record, or proceeds may be wired or sent via electronic funds transfer
through the ACH network directly to your predetermined bank account. Wires
are subject to a $15 fee paid by the investor. There is no charge when
proceeds are sent via the ACH system; however credit may not be available
for two to three days. In order to have proceeds sent via ACH, your bank
or financial institution must be a member of the ACH system. A signature
guarantee or signature verification from a Signature Validation Program
member or other acceptable form of authentication from a financial
institution source may be required of all shareholders to change or add
telephone redemption privileges. For security reasons, requests by
telephone will be recorded. |
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| Through
a systematic withdrawal plan |
If
you own shares with a value of $15,000 or more, you may participate in the
systematic withdrawal plan. The systematic withdrawal plan allows you to
make automatic withdrawals from your Fund account at regular intervals.
The minimum withdrawal amount is $250. Money can be transferred from your
Fund account to your bank account or proceeds can be mailed to you in the
form of a check. In order to establish this option, please complete the
Systematic Withdrawal Plan section on the account application or submit a
signed written request and a voided check or savings deposit slip. Your
request may also require a signature guarantee or signature verification
from a Signature Validation Program member or other acceptable form of
authentication from a financial institution source. Any request to change
or terminate your systematic withdrawal plan should be submitted to the
Transfer Agent five calendar days prior to effective date. Please call
1-800-443-4693 for information before submitting your request. If you
expect to purchase additional shares of the Fund, it may not be to your
advantage to participate in the systematic withdrawal plan because of the
possible adverse tax consequences of making contemporaneous purchases and
redemptions. |
Signature
Guarantees - A
signature guarantee of each owner, from either a Medallion program member or a
non-Medallion program member, is required in the following
situations:
▪if
ownership is being changed on your account;
▪when
redemption proceeds are payable or sent to any person, address or bank account
not on record;
▪when
a redemption is received by the Transfer Agent and the account address has been
changed within the last 15 calendar days;
▪for
all written redemptions greater than $50,000 from any shareholder
account.
In
addition to the situations described above, the Fund and/or the Transfer Agent
may require a signature guarantee or other acceptable signature verification in
other instances based on the circumstances relative to the particular
situations. Non-financial transactions including establishing or modifying
certain services on an account may require a signature guarantee, signature
verification from a Signature Validation Program member, or other acceptable
form of authentication from a financial institution source.
Signature
guarantees are designed to protect both you and the Fund from fraud. Signature
guarantees can be obtained from most banks, credit unions or saving
associations, or from broker/dealers, national securities exchanges, registered
securities exchanges or clearing
agencies
deemed eligible by the Securities and Exchange Commission (“SEC”). Notaries
cannot provide signature guarantees.
We
may waive these requirements in certain instances where it appears reasonable to
do so and it will not unduly affect the interests of other
shareholders.
Corporations,
Trusts and Other Entities –
Additional documentation is normally required in the case of corporations,
fiduciaries and others who hold shares in a representative or nominee capacity.
Such documentation may include certified copies of corporate resolutions, or
certificates of incumbency, or such other documentation as may be required under
the Uniform Commercial Code or other applicable laws or regulations. For
authorization of redemptions by a corporation, it will also be necessary to have
an appropriate certified copy of resolutions on file with the Fund. Your
redemption will not become effective until we have received all documents in the
form required. It is your responsibility as the shareholder to maintain such
documentation on file and in a current status. If you have questions concerning
redemption requirements, please write or telephone us well ahead of an
anticipated redemption in order to avoid any possible delay.
Individual
Retirement Accounts
– Shareholders who redeem shares held in an IRA or other qualified retirement
plan must indicate on their written redemption requests whether to withhold
federal income tax. If such a shareholder does not, this type of redemption will
be subject to federal income tax withholding at the rate of 10%.
Shares
held in IRAs and other retirement plan accounts may be redeemed by telephone at
1-800-443-4693. Investors will be asked whether to withhold income tax from any
such distribution.
POLICY
AND PROCEDURES TO PREVENT SHORT-TERM TRADING IN FUND SHARES AND MARKET
TIMING
The
Fund is intended for long-term investors and discourages excessive short-term
trading in Fund shares and other abusive trading practices that may disrupt
portfolio management strategies, harm fund performance and create additional
transaction costs that are borne by all shareholders.
Accordingly,
the Board of Trustees of the Trust (the “Board”) has developed and adopted a
market timing policy under which the Fund and the Transfer Agent will take steps
to reduce the frequency and effect of these activities in the Fund, which
includes monitoring trading activity in Fund shares. The Fund monitors
shareholder redemptions for market timing activity. If such monitoring reveals
excessive short-term trading or other abusive trading practices, the Fund will
exercise its right to reject purchase orders from such investors. Although these
efforts are designed to discourage abusive trading practices, these tools cannot
eliminate the possibility that such activity will occur. Further, while the Fund
makes efforts to identify and restrict frequent trading, the Fund receives
purchase and sale orders through financial intermediaries and cannot always know
or detect frequent trading that may be facilitated by the use of intermediaries
or the use of group or omnibus accounts by those intermediaries. The Fund seeks
to exercise its judgment in implementing these tools to the best of its
abilities in a manner that it believes is consistent with shareholder interests.
In making this judgment, the Fund may consider trading done in multiple accounts
under common ownership or control. The Fund or the Transfer
Agent
may notify the investor that a purchase order has been rejected after the day
the order is placed or after acceptance by the intermediary.
ADDITIONAL
POLICIES ABOUT TRANSACTIONS
The
Fund reserves the right to:
▪Vary
or waive any minimum investment requirement.
▪Refuse,
change, discontinue, or temporarily suspend account services, including purchase
or telephone redemption privileges, for any reason.
▪Suspend
your right to redeem shares or postpone the date of payment beyond the normal
seven-day period under emergency circumstances or when the NYSE is
closed.
▪Reject
any purchase request for any reason. Generally, the Fund does this if the
purchase is disruptive to the efficient management of the Fund (due to the
timing of the investment or an investor’s history of excessive
trading).
▪Redeem
all shares in your account if your balance falls below the Fund’s minimum. If,
within 60 days of the Fund’s written request, you have not increased your
account balance, you may be required to redeem your shares. The Fund will not
require you to redeem shares if the value of your account drops below the
investment minimum due to fluctuations of NAV.
▪Delay
paying redemption proceeds for up to seven days after receiving a request, if an
earlier payment could adversely affect the Fund.
▪Modify
or terminate the Automatic Investment and Systematic Withdrawal Plans at any
time.
▪Make
a “redemption in kind” (a payment in portfolio securities rather than cash) if
the amount you are redeeming is in excess of the lesser of (i) $250,000 or
(ii) 1% of the Fund’s assets. In such cases, you may incur brokerage costs
in converting these securities to cash.
▪Reject
any purchase or redemption request that does not contain all required
documentation.
If
you elect telephone transactions on the account application or in a letter to
the Fund, you may be responsible for any fraudulent telephone orders as long as
the Fund has taken reasonable precautions to verify your identity. If an account
has more than one owner or authorized person, the Fund will accept telephone
instructions from any one owner or authorized person. In addition, once you
place a telephone transaction request, it cannot be cancelled or modified after
the close of regular trading on the NYSE (generally, 4:00 p.m., Eastern Time).
Telephone trades must be received by or prior to market close. Please allow
sufficient time to place your telephone transaction.
During
periods of significant economic or market changes, telephone transactions may be
difficult to complete. If you are unable to contact the Fund by telephone, you
may also mail the request to:
Evercore
Equity Fund
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
Wisconsin 53201-0701
SHAREHOLDER
SERVICES
The
following services are also available to shareholders through the
Adviser:
▪Uniform
Transfers (Gifts) to Minors accounts
▪Accounts
for corporations or partnerships
▪Prototype
retirement plans suitable for the self-employed, including sole proprietors,
partnerships and corporations.
▪Traditional
IRAs
▪Roth
IRAs
▪Coverdell
Education Savings Accounts
▪Simplified
Employee Pensions (SEPs)
To
obtain the appropriate disclosure documentation and complete information on how
to open a retirement account, call 1‑800‑443‑4693.
HOW
SHARE PRICE IS DETERMINED
Shares
of the Fund are purchased or redeemed at the NAV per share next calculated after
your purchase order and payment or redemption order is received in good order
(as defined above). The NAV per share is computed once daily, Monday through
Friday, as of the close of the NYSE (normally 4:00 p.m., Eastern Time)
except on days on which the NYSE is closed for trading. The NAV per share
calculation is made by subtracting from the Fund’s total assets any liabilities
and then dividing into this amount the total outstanding shares as of the date
of the calculation.
Each
security owned by the Fund that is listed on an exchange is valued at its last
sale price on that exchange on the date as of which assets are valued. Where the
security is listed on more than one exchange, the Fund will use the price of
that exchange which it generally considers to be the principal exchange on which
the stock is traded. Lacking sales, the security is valued at the mean between
the last current closing bid and asked prices. An unlisted security for which
over-the-counter market quotations are readily available is valued at the mean
between the last current bid and asked prices. When market quotations are not
readily available, any security or other asset is valued at its fair value. The
Board of Trustees has designated the Adviser as the Fund's valuation designee to
perform fair value functions in accordance with valuation policies and
procedures adopted by the Adviser, subject to the Board of Trustee's oversight.
The fair value of a security is the amount which the Fund might reasonably
expect to receive upon a current sale. The fair value of a security may differ
from the last quoted price and the Fund may not be able to sell a security at
the fair value. Market quotations may not be available, for example, if trading
in a particular security was halted during the day and not resumed prior to the
close of trading on the NYSE.
Trading
in foreign securities markets is generally completed each day at various times
prior to the close of the NYSE. The values of foreign securities held by the
Fund will be determined as of such times for purposes of determining the NAV of
the Fund. If events which materially affect the value of foreign securities, if
any, held by the Fund occur subsequent to the close of the securities market on
which such securities are primarily traded, the investments affected thereby
will be valued at “fair value” as described above.
MANAGEMENT
OF THE FUND
The
Fund’s investment adviser, Evercore Wealth Management, LLC, located at 55 East
52nd
Street, 23rd
Floor, New York, NY 10055, was founded in 2008. The Adviser managed
approximately $12.2 billion in assets as of December 31, 2023. The
Adviser provides research, statistical, advisory and managerial services to the
Fund in return for an advisory fee paid monthly.
The
persons responsible for the Fund’s management are Timothy Evnin, Partner and
Portfolio Manager of the Adviser since October 2009, Charles D. Ryan, Partner
and Portfolio Manager of the Adviser since September 2008 and Michael Seppelt,
CFA, Partner and Portfolio Manager of the Adviser since September
2011.
Mr.
Evnin has over 20 years of experience managing balanced portfolios for high net
worth clients, equity accounts for institutional clients and equity mutual funds
and has served as Portfolio Manager of the Fund (including the Predecessor Fund)
since 2010.
Mr.
Ryan has over 20 years of experience managing equity portfolios for high net
worth clients and equity mutual funds and has served as Portfolio Manager of the
Fund (including the Predecessor Fund) since December 2011. Mr. Ryan was
previously a Managing Director for U.S. Trust and a portfolio manager in the
Growth Equity Strategy Group at U.S. Trust.
Mr.
Seppelt has over 20 years of experience managing equity portfolios for high net
worth clients and has worked with the Fund since February 2014 (including the
Predecessor Fund). Mr. Seppelt holds the Chartered Financial Analyst
designation.
The
Statement of Additional Information provides additional information about the
portfolio managers’ compensation, other accounts managed by the portfolio
managers and the portfolio managers’ ownership of the Fund.
An
annual fee at the rate of 0.75% of the Fund’s average daily net assets is
payable to the Adviser for its services under the Fund’s investment advisory
agreement. For the fiscal year ended December
31, 2023,
the Adviser received management fees of 0.75% of the Fund’s average daily net
assets. The Adviser has contractually agreed to waive all or a portion of its
agreed to advisory fees with respect to the Fund under the Advisory Agreement,
and to reimburse the Fund for operating expenses it incurs to the extent
necessary to ensure that the total operating expenses (excluding all federal,
state and local taxes, interest, dividends and interest on short positions,
acquired fund fees and expenses, brokerage commissions and other costs incurred
in connection with the purchase and sale of securities and extraordinary items)
of the Fund do not exceed 1.00% of the Fund’s average daily net assets annually.
This expense limitation agreement will continue in effect until April 30,
2025,
with successive renewal terms of one year unless terminated by the Board of
Trustees prior to any such renewal. The Adviser has a right to receive
reimbursement from the Fund for fee reductions and/or expense payments made
pursuant to the expense limitation agreement made in the prior three fiscal
years, provided that after giving effect to such reimbursement total operating
expenses (excluding all federal, state and local taxes, interest, dividends and
interest on short positions, acquired fund fees and expenses, brokerage
commissions and other costs incurred in connection with the purchase and sale of
securities and extraordinary items) of the Fund do not exceed 1.00% of the
Fund’s average daily
net
assets in the year of reimbursement. As of December 31, 2023, the Adviser has
recouped all eligible previously waived expenses.
A
discussion regarding the factors considered by the Board in approving the
investment advisory agreement with the Adviser is included in the Fund’s
Annual
Report
for the year ended December
31, 2023.
DIVIDENDS,
OTHER DISTRIBUTIONS AND SHAREHOLDER TAXATION
The
Fund intends to pay dividends from net investment income annually and to
distribute all net realized capital gains at least annually. In addition, the
Fund may make additional distributions if necessary to avoid imposition of a 4%
federal excise tax or federal income tax on undistributed net investment income
and net realized gains. However, no assurances can be given that distributions
will be sufficient to eliminate all taxes. Please note, however, that the
investment objective of the Fund is long-term growth of capital. You should
measure the success of your investment by the value of your investment
(including distributions you have received) at any given time and not solely by
the distributions you receive.
When
a dividend or capital gain distribution is paid, the Fund’s NAV decreases by the
amount of the payment. If you purchase shares shortly before a distribution, you
will be subject to income tax on the distribution, even though the value of your
investment (plus cash received, if any) remains the same. All dividends and
capital gain distributions will automatically be reinvested in additional Fund
shares at the NAV per share on the reinvestment date unless you specifically
request that either dividends or capital gain distributions or both be paid in
cash. If you elect to receive distributions by check and the post office cannot
deliver the check, or if the check remains uncashed for six months, the Fund
reserves the right to reinvest the distribution check in your Fund account at
the-then current NAV per share and to reinvest all subsequent distributions in
shares of the Fund.
The
election to receive distributions or reinvest them may be changed by writing to
the Fund at:
Evercore
Equity Fund
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
Wisconsin 53201-0701
You
may also change your distribution election by telephoning the Fund at
1-800-443-4693.
In
order to allow sufficient processing time for a change in distribution
elections, any change regarding a particular distribution must be received at
least 5 days prior to the record date for the distribution.
For
federal income tax purposes, all dividends you receive from the Fund’s
investment company taxable income (generally consisting of net investment
income, the excess of net short-term capital gain over net long-term capital
loss, and net gains and losses from certain foreign currency transactions, if
any, all determined without regard to any deduction for dividends paid) are
taxable to you as ordinary income or as “qualified dividend income,” whether
reinvested in additional shares or received in cash, unless you are exempt from
taxation or are entitled to a tax deferral (such as investing in Fund shares
through an IRA or other qualified retirement plan).
The
Fund’s dividends attributable to its “qualified dividend income” (i.e.,
dividends received on stock of most domestic and certain foreign corporations
with respect to which the Fund satisfies certain holding period and other
restrictions) generally are subject to federal income tax for individual and
certain other non-corporate shareholders (each, an “individual shareholder”) who
satisfy those restrictions with respect to their Fund shares at the lower rates
for long-term capital gains ‑‑ a maximum of 15% for a single shareholder with
taxable income not exceeding $518,900 ($583,750 for married shareholders filing
jointly) and 20% for those individual shareholders with taxable income exceeding
those respective amounts (which apply for 2024 and will be adjusted for
inflation annually thereafter). A portion of the Fund’s dividends also may be
eligible for the dividends-received deduction allowed to corporations ‑‑ the
eligible portion may not exceed the aggregate dividends the Fund receives from
domestic corporations subject to federal income tax (excluding REITs) and
excludes dividends from foreign corporations ‑‑ subject to similar
restrictions.
Distributions
of net capital gain (i.e.,
the excess of net long-term capital gain over short-term capital loss) you
receive from the Fund, whether reinvested in additional shares or received in
cash, are taxable to you as long-term capital gain, at the 15%/20% maximum rates
mentioned above. The capital gain holding period is determined by the length of
time the Fund has held the asset(s) on which the gain was realized and not the
length of time you have held shares in the Fund.
You
will be informed annually as to the amount and nature of all dividends and
capital gain distributions paid to you during the prior year. Such distributions
may also be subject to state or local taxes. If you are not required to pay
taxes on your income, you are generally not required to pay federal income tax
on the amounts distributed to you.
Your
redemption of Fund shares will result in taxable gain or loss to you, depending
on whether the redemption proceeds are more or less than your adjusted basis in
the redeemed shares. If you hold your Fund shares as a capital asset, any gain
or loss that you realize on a redemption will be capital gain or loss and will
be long-term or short-term, depending on how long you hold the shares. Long-term
capital gains are taxable to individual shareholders at the 15%/20% maximum
federal income tax rates mentioned above.
An
individual is required to pay a 3.8% federal tax on the lesser of (1) the
individual’s “net investment income,” which generally includes dividends and net
gains from the disposition of investment property (including dividends and
capital gain distributions the Fund pays and net gains realized on the
redemption of Fund shares), or (2) the excess of the individual’s “modified
adjusted gross income” over $250,000 for married persons filing jointly
($200,000 for single taxpayers). This tax is in addition to any other taxes due
on that income. A similar tax applies to estates and trusts. Shareholders should
consult their own tax advisors regarding the effect, if any, this provision may
have on their investment in Fund shares.
By
law, the Fund must withhold 24% of your distributions and redemption proceeds
(regardless of whether you realize a gain or loss) if you do not provide your
correct social security or other taxpayer identification number to the Fund and
certify to it that you are not subject to backup withholding, or if the Internal
Revenue Service (“IRS”) instructs the Fund to do so.
Federal
law requires that a mutual fund (like the Fund), among others, report its
shareholders’ basis and other information to the IRS when “covered” shares of
the mutual fund (that is, shares
acquired
on or after January 1, 2012) are redeemed. The Fund has chosen average basis as
its standing (default) basis determination method for all shareholders, which
means this is the method the Fund will use to determine reportable basis when
there are multiple purchases on different dates at differing NAVs per share and
the entire position is not redeemed at one time. You may choose a method other
than the Fund’s default method at the time of your purchase or before redemption
of covered shares. The basis method a shareholder elects may not be changed with
respect to a redemption of shares after the settlement date of the redemption.
Fund shareholders should consult with their tax advisors to determine the best
IRS-accepted basis determination method for their tax situation and to obtain
more information about how the basis election and reporting rules apply to
them.
This
section is not intended to be a full discussion of the federal income tax law
and the effect of such law on you. There may be other federal, state, or local
tax considerations applicable to a particular investor. You are urged to consult
your own tax advisor.
INDEX
DESCRIPTIONS
The
Standard & Poor’s 500®
Index is an unmanaged, market capitalization weighted index based on the average
weighted performance of 500 widely held common stocks.
FINANCIAL
HIGHLIGHTS
The
financial highlights table is intended to help you understand the Fund’s
financial performance during the periods shown. Certain information reflects
financial results for a single Fund share. The total returns in the table
represent the rate that an investor would have earned on an investment in the
Fund (assuming reinvestment of all dividends and other distributions). The
information presented has been audited by Cohen & Company, Ltd., the Fund’s
independent registered public accounting firm. The Fund’s audit report, along
with the financial statements, is included in the Fund’s Annual
Report,
which is available upon request.
Selected
per share data is based on a share of common stock outstanding throughout each
period.
Years
Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
2023 |
2022 |
2021 |
2020 |
2019 |
|
|
| |
| Per
Share Data |
| Net
asset value, beginning of year |
$ |
26.38 |
| $ |
33.65 |
| $ |
26.81 |
| $ |
21.80 |
| $ |
16.10 |
|
|
|
| |
| Income
from investment operations: |
|
Net
investment income(1) |
0.17 |
| 0.15 |
| 0.01 |
| 0.01 |
| 0.08 |
|
|
|
| |
| Net
realized and unrealized |
|
|
|
| |
|
|
| |
| gain
(loss) on investments |
7.20 |
| (7.27) |
| 7.88 |
| 5.24 |
| 6.11 |
|
|
|
| |
| Total
from investment operations |
7.37 |
| (7.12) |
| 7.89 |
| 5.25 |
| 6.19 |
|
|
|
| |
| Less
distributions: |
| Distributions
from net investment income |
(0.17) |
| (0.15) |
|
(0.00)(2) |
(0.02) |
| (0.08) |
|
|
|
| |
| Distributions
from net realized |
|
|
|
| |
|
|
| |
| gains
from security transactions |
0.00 |
| 0.00 |
| (1.05) |
| (0.22) |
| (0.41) |
|
|
|
| |
| Total
distributions |
(0.17) |
| (0.15) |
| (1.05) |
| (0.24) |
| (0.49) |
|
|
|
| |
| Net
asset value, end of year |
$ |
33.58 |
| $ |
26.38 |
| $ |
33.65 |
| $ |
26.81 |
| $ |
21.80 |
|
|
|
| |
| Total
return |
27.95 |
% |
(21.17) |
% |
29.46 |
% |
24.12 |
% |
38.46 |
% |
|
|
| |
| Supplemental
data and ratios: |
| Net
assets, end of year (in 000’s) |
$ |
404,869 |
| $ |
313,028 |
| $ |
380,175 |
| $ |
271,393 |
| $ |
203,115 |
|
|
|
| |
| Ratio
of operating expenses to average net |
|
|
|
| |
|
|
| |
| assets,
before reimbursements/recoupment |
0.93 |
% |
0.93 |
% |
0.95 |
% |
0.98 |
% |
0.99 |
% |
|
|
| |
| Ratio
of operating expenses to average net |
|
|
|
| |
|
|
| |
| assets,
net of reimbursements/recoupment |
0.93 |
% |
0.93 |
% |
0.96 |
% |
1.00 |
% |
1.00 |
% |
|
|
| |
|
Ratio
of net investment income to |
|
|
|
|
|
|
|
| |
| average
net assets, before reimbursements/recoupment |
0.59 |
% |
0.53 |
% |
0.05 |
% |
0.10 |
% |
0.43 |
% |
|
|
| |
|
Ratio
of net investment income to |
|
|
|
|
|
|
|
| |
| average
net assets, net of reimbursements/recoupment |
0.59 |
% |
0.53 |
% |
0.04 |
% |
0.08 |
% |
0.42 |
% |
|
|
| |
| Portfolio
turnover rate |
9.66 |
% |
11.68 |
% |
9.12 |
% |
8.13 |
% |
15.11 |
% |
|
|
| |
(1)Net
investment income (loss) per share is calculated using ending balances prior to
consideration of adjustments for permanent book and tax
differences.
(2)Amount
per share is less than $0.01.
PRIVACY
NOTICE
At
Evercore Equity Fund, we recognize and respect the privacy of each of our
investors and their expectations for confidentiality. The protection of investor
information is of fundamental importance in our operation and we take seriously
our responsibility to protect personal information.
We
collect, retain and use information that assists us in providing the best
service possible. This information comes from the following
sources:
•Account
applications and other required forms
•Written,
oral, electronic or telephonic communications, and
•Transaction
history from your account.
We
only disclose personal nonpublic information to third parties as necessary and
as permitted by law.
We
restrict access to personal nonpublic information to employees, affiliates and
service providers involved in servicing your account. We require that these
entities limit the use of the information provided to the purposes for which it
was disclosed and as permitted by law.
We
maintain physical, electronic and procedural safeguards that comply with Federal
standards to guard nonpublic personal information of our customers.
If
you hold shares of the Fund through a financial intermediary, including, but not
limited to, a broker-dealer, bank, or trust company, the privacy policy of your
financial intermediary would govern how your non-public personal information
would be shared by those entities with unaffiliated third parties.
To
the extent you are covered under the California Consumer Privacy Act of 2018
(“CCPA”), you can review Evercore’s applicable Privacy Notice at
https://www.evercore.com/global-privacy-notice/. The Notice details the Personal
Information that has been collected about certain California residents, its
usage and disclosure. Any requests regarding the disclosures and/or a deletion
request can be made by contacting us through the above link.
|
|
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|
|
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ADDITIONAL
INFORMATION
The
Statement of Additional Information (SAI) contains additional information
about the Fund and is incorporated by reference into this Prospectus. The
Fund’s Annual and Semi-Annual Reports to shareholders and in Form N-CSR,
contain additional information about the Fund’s investments. In the Fund’s
Annual Report, you will find a discussion of the market conditions and
investment strategies that significantly affected the Fund’s performance
during its last fiscal year. In Form N-CSR, you will find the Fund’s
annual and semi-annual financial statements.
You
may obtain a free copy of the Fund’s SAI, Annual, Semi-Annual Reports and
other information such as Fund financial statements on the Fund’s website
at
www.evercoreequityfund.com.
You
may obtain a free copy of these documents by calling, writing or e-mailing
the Fund as shown below. You also may call the toll free number given
below to request other information about the Fund and to make shareholder
inquiries.
You
may review the SAI and other information about the Fund by visiting the
Commission’s Internet site at http://www.sec.gov. Copies of this
information also may be obtained, upon payment of a duplicating fee by
electronic request at [email protected] or by writing to the Public
Reference Section of the Commission, Washington, D.C.
20549-1520.
Investment
Company Act File No. 811-22548
EVERCORE
EQUITY FUND
55
East 52nd
Street, 23rd
Floor
New
York, New York 10055
1-800-443-4693
http://www.evercoreequityfund.com
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PROSPECTUS
April
30, 2024
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